Gensol Engineering Limited (NSE: GENSOL) has revealed plans to raise Rs. 600 crore through a mix of Foreign Currency Convertible Bonds (FCCBs) and warrants issued to promoters. This move, approved by the company’s Board of Directors, is aimed at improving financial stability and reducing its debt load.
Of the total Rs. 600 crore, Rs. 400 crore will be raised via FCCBs, and Rs. 200 crore will be generated through the issuance of warrants to the promoters. In addition to this, the company is also pursuing divestment initiatives, including the sale of vehicles and a subsidiary, to further improve its debt-to-equity ratio.
As of now, Gensol Engineering carries a debt of Rs. 1,146 crore against reserves of Rs. 589 crore, leading to a debt-to-equity ratio of 1.95. With the upcoming fundraising, the company expects its reserves to grow to around Rs. 1,200 crore. Furthermore, ongoing divestments, estimated at Rs. 615 crore, will reduce its debt to approximately Rs. 530 crore, resulting in a projected debt-to-equity ratio of 0.44.
Gensol Engineering Limited, based in Ahmedabad, is a prominent player in the renewable energy sector, with a primary focus on solar power. The company offers engineering, procurement, and construction (EPC) services, as well as consulting solutions for solar energy projects. Gensol’s operations include project execution, asset management, and advisory services, catering to developers, investors, and government entities.
The company has been actively involved in solar projects across India and globally, with expertise in ground-mounted, rooftop, and floating solar installations. Beyond EPC services, Gensol also manages solar assets, ensuring efficient operation and maintenance of installed projects.
Recently, Gensol has expanded into the electric mobility sector, venturing into electric vehicle (EV) manufacturing to offer sustainable mobility solutions. This move is in line with the growing trend of combining renewable energy with transportation.
Through these strategic financial moves, Gensol Engineering aims to solidify its financial foundation while continuing its commitment to renewable energy and sustainable mobility. The company remains focused on expanding its project portfolio and exploring further opportunities in the clean energy sector.
